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HomeMy WebLinkAbout1987-04-20 Min - Board REGULAR MEETING April 20, 1987 The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Corbett at 7:04 P.M. in the Tahoe Truckee Unified School District Board Room ROLL CALL: Directors Hamilton, Maass, Sutton and Corbett were present. Director Cooley was expected. EMPLOYEES PRESENT: Tom Buckhouse, Marilyn Chance, acting secretary, and Peter Holzmeister. CONSULTANTS PRESENT: Counsel John Phelps and Consulting Engineer Keith Sauers. OTHERS PRESENT: Among those present in the audience were Chris May, Mo Gardiner and C. R. V anLand i ngham. APPROVAL OF MINUTES Director Hamilton moved, and Director Maass seconded, that the minutes of March 16 , 1987 be placed in final form. All Directors, aye, by voice vote. SO MOVED. ,,,...� Director Maass moved, and Director Hamilton seconded, that the minutes of March 23, 1987 be placed in final form. All Directors, aye, by voice vote. SO MOVED. BILLS FOR APPROVAL Mr. Holzmeister advised that the bill from NRECA is for annual membership dues. Membership enables the District to obtain Directors' liability insurance through the organization. Director Hamilton moved , and Director Maass seconded, that the bills presented for consideration be approved for payment. ROLL CALL: Cooley, absent; all other Directors, aye. SO MOVED. Director Cooley arrived at 7:08 P.M. HANAGER'S REPORT Budget report The packet included the budget report through the end of 1986. It included adjustments that were made during January 1987 , Mr. Holzmeister noted. In the electric fund there were two items of concern - the purchased power account was overspent because the District did not pass on the SPPCo rate increase. In technical services an invoice was received in 1986 for destruction of PCB's in 1985. This pushed the contract services budget ' into the red. Also, in 1986 transformers for the water pump station upgrade were purchased. This equipment was charged to the electric fund even though it was budgeted in the water fund. -1- The Manager noted that these problems will be solved in the 1987 budget. A reserve for incumbrances will be set up in the 1986 financial report to handle invoices that refer to 1986 work, but which are billed in 1987. This will keep 1986 projects from impacting the 1987 budget. The electric rates have been increased to solve the problem with the purchased power account. Director Sutton expressed concern regarding the fact that Directors' compensation was over budget by 6 1/2%. Mr. Holzmeister stated he thought there must be an error since the budget for Directors' compensation is budgeted to the penny. He indicated it would be investigated and corrected. Regarding an overage for vehicles in the amount of $91 ,000, Mr. Holzmeister explained that a line truck was ordered in 1985 but not delivered and paid for until 1986. There was some discussion about setting up a reserve for incumbrances. Mr. Holzmeister noted that he would copy the Board with portions of a chapter from the Municipal Finance Officer's Handbook that describes how this is done. Security lights Mr. Holzmeister noted that street lighting to the community is available at District expense. If the County is asked to pay for street lighting in Truckee, they will probably refuse. If it is eliminated, the District will incur the anger of customers who are accustomed to having their street lit. If the PUD attempts to operate a street lighting program on an equitable basis, costs will increase substantially. Currently, the District is donating approximately $25,000 per year in street lighting to the Truckee community. There are currently 294 customers taking advantage of the security light service. The light is installed and maintained by the District at the customer's request. For this service, a f lat rate of $6 per month is charged. The customer signs a contract whereby they promise to keep the light in service for a minimum of four years. This allows the District, in theory, to recoup its investment in material. If the District continues to offer the service, it should get its capital investment up-front, charge for service calls, and get a proper monthly fee. Discussion ensued and Director Sutton stated she thought the District should have security lights available, and should possibly look into street light districts. Director Maass suggested that the Electric Committee review this matter. Interview expenses for Bruce Nelson Bruce Nelson was interviewed for the position of Finance Supervisor and did not get the job. He came to Truckee with the understanding that there was no commitment to pay his expenses. However, he has asked that the Board consider reimbursing his airline ticket cost. His total expenses were $553.15. -2- Director Sutton moved that Mr. Nelson' s request for reimbursement be denied. The motion was seconded by Director Hamilton. ROLL CALL: Cooley, abstain; all other Directors, aye. SO MOVED. Status of Hopkins laud subdivision Mr. Holzmeister advised that he attended the Planning Commission meeting to state the District' s concerns over planning for water service to the subject property. The Commission heard from several others as well, and decided to require a full environmental impact report before acting on the application. It appears that the matter will not come back before the Planning Commission for some months. PUBLIC INPUT There was no public input. CORRESPONDENCE PUC decision Manager Holzmeister noted that the District has received a copy of the proposed PUC decision in the matter of the application of the TDPUD to annex territory within the service area of Sierra Pacific Power Company (Ponderosa annexation). Mr. McDonough, by letter , stated he does not like anything about the decision except the result , which is favorable. He noted it is his inclination to file comments, asking for deletion of various dicta. There is an April 26 deadline and he will forward a draft for review by the District. The Board asked for a copy of the draft. McDonough letter regarding FERC notice It was noted that Mr. McDonough transmitted a copy of the March 19 Federal Register containing a FERC notice of proposed rule making. FERC is requesting comments on two simplified methods of adjusting electric utility wholesale rates effective July 1 , 1987 as a result of the Tax Reform Act of 1986. The two methods advanced by FERC are ( 1) a simplified formula approach and (2) a fixed percent reduction in the wholesale demand charge which the staff has calculated as falling between five and eight percent. Ferris Gilkey of R. W. Beck was copied with Mr. McDonough's letter and has already responded to the District. CMUA letter regarding SB 553 Jerry Jordan is asking that the District support Senate Bill 553 which shifts the burden in cases where a special district is taking property by eminent domain from a privately owned utility. If passed, it will make things more difficult for special districts. Director Hamilton moved , and Director Maass seconded, that the Board authorize a letter opposing Senate Bill 553, Director Sutton wondered what -3- 0000. . -ad of effect this bill might have on an entity like the Los Angeles Water Department or the Mono Lake problem in the southeastern portion of the Sierra Nevada. The bill might be closely related to that , she noted. All Directors, aye, by voice vote. SO MOVED, Mr. Holzmeister indicated he would prepare the letter. CON41TTEE REPORTS There were no committee reports. PUBLIC HEARING - CONSIDERATION OF AN ORDINANCE INCREASING THE SALARY PAID TO THE GENERAL MANAGER The public hearing to discuss an increase in the salary paid to the General Manager was opened at approximately 7:30 P.M. There was no public input, and Director Maass moved that the hearing be closed; seconded by Director Hamilton. SO MOOED by consensus. Director Maass noted that he requested this item be placed on the agenda. Mr. Holzmeister has been with the District three years and has not had an increase in salary. He proposed the same increase the management employees were granted this year. Director Sutton expressed concern that the proposed ordinance does not state the current salary or proposed salary, only the percentage by which the Manager's salary would be increased. She went on to say the notice of public hearing did not state the figures either. Counsel Phelps suggested placing the figures in the ordinance (which will be published). Director Maass noted Mr. Holzmeister's current salary is $60,000 annually. A 4% increase retroactive to January 1 brings that f igure up to $62 ,400; on July 1 the 3% increase will bring the salary to $64,272, There was discussion regarding the legality of granting a retroactive increase to a management employee. Counsel Phelps stated he saw no problem with this. Director Sutton stated she is not in favor of the increase. She stated there are defects in what has reached the Board at this point. Further, Director Sutton stated she feels a $60,000 salary is out of line with the median income of the people who live in this community, and all the salaries the PUD pays are inflated. She noted her concern about how much the District pays. If salaries are not controlled there will have to be rate increases. Director Cooley suggested having a one-year moratorium on all salary increases. Director Sutton stated she does not feel the District may impose this on bargaining unit employees. The Chairman stated there is a motion on the floor to adopt Ordinance 8702, increasing the salary of the General Manager as proposed; he seconded the motion. ROLL CALL: Hamilton and Sutton, no; all other Directors, aye. SO ORDAINED, Director Sutton noted she hopes no one interprets her "no" vote as a criticism of the Manager because her criticism has to do with the amount of the salary that is already paid. She stated she believes the Board is almost a year overdue in reviewing the Manager. The Board has not had a -4- review of any of the managerial employees. She asked that a review of Mr. Holzmeister be placed on the agenda for discussion during closed session at the next meeting. NEW DISTRICT COMPLEX - STATUS OF CONSTRUCTION - REVIEW OF PAY REQUESTS - REQUISITION FOR RELEASE OF FUNDS Mr. Holzmeister reported work on the new District complex is progressing quickly. The roll up doors are being installed; drywall is almost complete; heating and plumbing subcontractors have been working steadily; the electrical subcontractor is also working steadily; site grading will begin soon; and the stucco subcontractor has begun work. After some discussion about the stucco work and contractor, Director Cooley asked that the Manager inform him of what's holding him up, what could hold him up, what his time frame i s, how many days he's projected to do the job, and his reasons. Requests for payment were reviewed. The furniture bid from Morrill and Machabe was discussed. They have advised that it is common to receive a deposit prior to ordering the furniture. They have billed the District $11 ,141.62. Counsel advised this if this was not specified in their bid the District is not obligated to conform. Director Maass moved, and Director Hamilton seconded, that the bills from Value Builders in the amount of $275,353, SEA in the amount of $4,258.33, and Dale Cox in the amount of $4,091.7 8 be approved for payment. ROLL CALL: all Directors, aye. SO MOVED. Director Maass moved, and Director Hamilton seconded, that a request for release of funds from the Bank of America in the amount of $305,947.78 be approved. ROLL CALL: all Directors, aye. SO MOVED. The certified payroll records were reviewed and discussed. Director Sutton moved that the District provide the contractor with the proper form which would be the State Labor Relations form for certified payroll presentations. MOTION DIED for lack of a second. Counsel advised this cannot be acted upon since it is not an agenda item. Director Sutton asked that it be placed on the next meeting agenda. Bill Roberts of Value Builders has requested compensation for the preparation and submittal of the prevailing wage forms. After some discussion, Director Maass asked that Counsel provide a written opinion as to the District's responsibilities in this matter. After more discussion of the various problems encountered with respect to the roof, he withdrew his request and moved that Mr. Roberts ' request for reimbursement be denied. The motion was seconded by Director Hamilton. SO MOVED by consensus. POSSIBLE DIRECTION REGARDING CONFLICT OF INTEREST CODE Counsel Phelps recommended that the District adopt the Commission's regulation (Section 18730) , but retain the District's list of public officials that must make disclosure and the Itst of reportable interests. The District would not need to update its Conflict of Interest Code yearly -5- as the Commission would take care of that. It would retain what is probably the most important part of its prior Code, the list of officials who must make disclosures and the types of activities they must disclose. Some specificity would be lost. Discussion ensued. Director Maass moved, and Director Hamilton seconded, that Counsel be directed to draft a resolution outlining a conflict of interest code incorporating the compromised position of the Board and place it on the next meeting agenda. All Directors, aye , by voice vote. SO MOVED, Director Maass asked that the Board be copied with the current conflict of interest code and Counsel indicated he would do so and would also highlight the areas of change. CONSIDERATION OF REPLACING THS SODA SIERRA WATER STORAGE TANK Mr. Sauers noted that the Soma Sierra tank was damaged April 7 due to sustained pumping into a full tank resulting from a telemetry cable being damaged by an off-road vehicle. The floor/wall joint has been stressed beyond the yield point of the steel , and the tank is leaking at this location all the way around. The walls have bulged near the floor and near the roof. The roof had extended into a dome shape, but has now collapsed to near its original elevation. It was his opinion, he stated, that the tank is capable of limited service; however, any significant exterior loading such as an earthquake or snow load could cause the tank to collapse. Therefore, it is important to consider replacement of the tank before next winter. Discussion ensued about whether or not the tank could be rehabilitated or a prefabricated tank purchased. Director Maass moved that the Board authorize Mr. Sauers to go forward with preparation of all necessary documents - envioonmental , bidding etc. MOTION DIED for lack of a second. For Director Sutton's benefit, Mr. Sauers explained in detail the damage to the tank structure. Director Maass moved that the Board direct Mr. Sauers to draw up environmental documents, the proper bidding documents (whether it be a prefabricated or brand new tank) and bring it back to the Board at the next regular meeting. This includes the survey and soils work. Director Hamilton seconded the motion. Director Sutton initiated discussion, and Director Maass moved the question; seconded by Director Corbett. ROLL CALL vote to cut off discussion: Sutton, no; all other Directors, aye. SO MOVED. ROLL CALL vote on the motion giving direction to Mr. Sauers: all Directors, aye, with the exception of Director Sutton who stated she is voting "no" because discussion was shut off before she got answers to questions she wished to ask. SO MOVED, Director Sutton asked what the insurance coverage is for the tank and how much the District will be reimbursed. Mr. Holzmeister informed her that /00"� they were not specifically insured, but a damage claim has been filed with Crawford, the insurance adjuster. -6- 00001- CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTION OF AN ANNUAL DISPLAY ADVERTISING CONTRACT WITH THE SIERRA SUN Director Cooley moved, and Director Hamilton seconded, adopting Resolution No. 8714 authorizing the execution of an annual display advertising contract with the Sierra Sun. ROLL CALL: all Directors, aye. SO RESOLVED. CONSIDERATION OF RESOLUTION APPROVING SPECIFICATIONS AND CALLING FOR BIDS ON ELECTRICAL DISTRIBUTION EQUIPMENT - TRANSFORMERS Director Cooley moved , and Director Hamilton seconded, to adopt the Resolution approving specif ications and calling for bids on trans f o nwe rs. (Resolution NO. 8715.) ROLL CALL: all Directors, aye. SO RESOLVED, POSSIBLE DIRECTION REGARDING THB LOWERING OF WATER SERVICES IN TAHOE DONNER After hearing the Water Foreman's explanation of the problem in Tahoe Donner and discussing the matter, Director Hamilton moved that staff be authorized to establish a work order for lowering the water services at certain locations in Tahoe Donner, and to begin work on them at the earliest convenient time. The motion was seconded by Director Maass. ROLL CALL: Cooley, abstain; all other Directors, aye. SO MOVED. CONSIDERATION OF A RESOLUTION AMENDING THE DEFINITION OF DISTRIBUTION LINES FOUND IN ELECTRIC RULE E-22 Mr. Holzmeister noted there is a problem with the definition of "distribution lines" in the District's rules. The definition as given is a definition of primary distribution lines, Mr. Buckhouse noted. The problem arises throughout the remaining electric rules where the term "distribution lines" is used with the apparent intent to include both primary and secondary distribution facilities. Director Hamilton moved that this matter be referred to the Electric Committee for recommendation; seconded by Director Maass. All Directors, aye, by voice vote. SO MOVED, CONSIDERATION OF THE JOURNEYMAN LINEMAN APPRENTICE PROGRAM Mr. Holzmeister stated he would like an apprentice agreement to clearly set forth minimum hours of required training in specific areas, and have the State of California recognize the District's program rather than rely on SPPCo's recognition. Recently, a journeyman lineman resigned. SPPCo started a new group of apprentices through their training program. A position was posted in-house and Michael Camara, one of the District's two groundsmen, was selected as the new apprentice. Discussion ensued. Director Hamilton moved that the matter be referred to the Electric ,?001111- Committee; seconded by Director Sutton. SO MOVED by direction of the Chairman. -7- CONSIDERATON OF ESTABLISHING A POSITION OF AUTOMOTIVE MECHANIC Mr. Holzmeister noted that he has had several discussion with the Shop Steward and the Business Representative for the Union and, as yet, they have not agreed to the proposed schedule. Director Maass moved that the Board direct the Manager to meet with Union representatives in person between now and the next regular meeting to resolve this matter; seconded by Director Hamilton. All Directors, aye, by voice vote. SO MOVED. CONSIDERATION OF A REQUEST OF TRUCKEE SANITARY DISTRICT FOR WATER SERVICE TO A PROPOSED SULFIDE CONTROL STATION Mr. Holzmeister explained the Sanitary District's request for water service to the proposed sulfide control station. He recommended that Glenshire Mutual Water Company be authorized to serve the proposed TSD sulfide control station with the understanding that they cannot serve any other customers in TDPUD territory through those facilities. After some discussion, the Chairman directed that Counsel prepare a document stating the District's intent and authorize the preparation of an agreement between Glenshire , TSD and the TDPUD. CLOSED SESSION The Board adjourned to closed session at 9:13 P.M. pursuant to Government Code Section 95956.9(c) , which is pending litigation. RETURN TO PUBLIC SESSION The Board returned to public session and there was no report of any action taken or direction given. ADJOURNMENT There being no further business before the Board, Director Maass moved that the meeting be adjourned; seconded by Director Hamilton. All Directors, aye , by voice vote. SO MOVED. TRU KEE DONNER PU IC XUTIITY DISTRICT /I - I/ rep L. Corbett, President President by Marily Chance Act ng Secretary and Susan Macdonald, Deputy District Clerk sm/d5b.13 -g-